Moldova sees meat production rise despite cuts in state support
However, the situation in the meat industry remains complicated, due to the devaluation process coupled with the sharp decrease in the level of state support this year.
The Bureau’s report also revealed that the number of pigs in the country rose by 9.4% compare to last year, while cattle were up by 4.9%, poultry by 4.4%, and sheep and goats by 3.9%. Meanwhile, industrial-scale meat production increased by 9%, to 15,500t, while meat production by small-scale producers rose by 5.4% compared to last year, to 19,500t.
A number of the country’s agricultural organisations believe the future of the industry remains unclear, as it also faces increases in the cost of feed and imported equipment. Farming association UniAgroProtect has gone so far as to announce protest action, due to the lack of government support, which is scheduled for the 27 May, in Chisinau.
UniAgroProtect chairman Alexandr Slusar said: "The actual amount of funding has decreased by MDL200 million (US$10.8m) from the figure last year, to only MDL380m (US$20.6m). This has happened at a time when, due to devaluation of the national currency, imported equipment has become 30-35% more expensive for domestic producers. So we are fighting for an increase in the amount of funding, and we believe the actual amount should be no less than MDL1.2bn (US$65.3m)."
According to Slusar, that amount would still be a lower level of support than awarded to farmers in other European Union (EU) countries. For Moldovan farmers the competitiveness of the EU market is crucial as, following the signing of the free trade zone agreement with Europe in July of last year, Moldovan meat was subject to a ban from Russia. The official reason given for such a step was ‘veterinary problems’, but observers within the meat industry have suggested that it may be politically motivated.
As stated by the Deputy Agriculture Minister of Moldova Vlad Login this year, the decision was made to decrease the level of state support as the government overspent in this sector last year. "In fact, we had to partly cover spend from last year’s program [of support for agricultural producers] with the funds from this year’s budget," he stated.
